Original title: Quick Fact | iFLYTEK Liu Qingfeng: The most difficult period has passed, and the second half of the year will be better, and will increase strategic business investment
“For small, non-strategic and short-term unprofitable businesses, iFLYTEK will further focus on cutting and eliminating these directions as necessary, and will unswervingly increase investment in strategic directions. “At the performance exchange held today, Liu Qingfeng, chairman of iFlytek, said.
The financial report for the first half of this year released by iFLYTEK previously showed that the revenue in the first half of this year was 8.023 billion yuan, a year-on-year increase of nearly 27%; the net profit attributable to the parent was 278 million yuan, a year-on-year decrease of nearly 34%; the net profit following deduction was 279 million yuan , an increase of 33% year-on-year.
Liu Qingfeng mentioned that the company’s profits are affected by the stock prices of the three invested companies (Cambrian, Shangtang and Sanxing), but the volatility will decrease in the second half of the year, and some companies have even bottomed out and started to rebound. He said that 70 to 80 percent of iFlytek’s annual profits are in the second half of the year, and the proportion of capital impairment caused by the stock price of investment companies will decrease throughout the year, and the impact on iFLYTEK will also decrease.
From the perspective of business, in the first half of this year, iFLYTEK’s education business revenue totaled 2.328 billion yuan, an increase of nearly 27% year-on-year, accounting for 29%, and it is still the company’s largest source of performance. At present, iFLYTEK’s smart education products have been applied in 32 provincial administrative units across the country and overseas markets such as Japan and Singapore, and have built a business system for G/B/C customers.
Although affected by the epidemic, iFLYTEK’s smart city still maintained rapid growth and became the company’s second largest source of business. During the period, the total revenue reached 2.18 billion yuan, a year-on-year increase of 42%, accounting for 27%; information engineering Realized revenue of 1.441 billion yuan, a year-on-year increase of 48%, and digital government revenue of 444 million yuan, a year-on-year increase of 66%.
Liu Qingfeng said that the growth of smart city business related to intelligent business is relatively fast. Although there is an epidemic background, infrastructure investment in various places has an urgent need for intelligence. The winning rate of iFLYTEK has increased significantly. At the beginning of this year, it is expected that the contract value of smart city will win the bid. will double.
“Although the smart city business group seems to be growing rapidly, the strategic direction of iFLYTEK has not been adjusted. The core strategy is to increase the development of artificial intelligence in our characteristic direction of education, medical care, and smart cities. It is not because In the current background, we have adjusted the strategic direction.” Liu Qingfeng said.
The total revenue of the open platform and consumer business reached 1.994 billion yuan, a year-on-year increase of 6%, accounting for nearly 25%, and a year-on-year decrease of nearly 5 percentage points; of which the open platform and intelligent hardware achieved revenue of 1.346 billion yuan and 484 million yuan respectively. Year-on-year growth of 20% and 7% respectively.
Liu Qingfeng specifically mentioned at the exchange meeting that the fastest growing products in the first half of this year are learning machine products. “I think the next step in the integration of software and hardware is still a relatively large rigid demand in the field of education, and it will continue to drive the rapid growth of our intelligent hardware.” He also said that the development of artificial intelligence + office is very fast, and iFLYTEK is in the The competitive position in the industry has also been continuously improved, and the company’s translation machine market will also experience a relatively large rebound with the gradual liberalization of the epidemic.
As the next wave following electrification, iFLYTEK, which has entered into the intelligentization of automobiles, has also attracted considerable attention. In the first half of this year, iFLYTEK’s smart car revenue was 168 million yuan, a year-on-year decrease of nearly 6%; the new pre-installation shipments exceeded 3.75 million units, and the cumulative shipments exceeded 42.75 million units. indivual.
Wu Xiaoru, president of iFLYTEK, revealed that the revenue structure of iFLYTEK’s automobile business is “532”, that is, 50% of the revenue comes from the models delivered two years ago, 30% of the revenue comes from the models delivered one year ago, and only 10-20% of the revenue It is from the model delivered that year. In the first half of this year, domestic vehicle shipments fell by regarding 6%, and Xunfei’s automobile business revenue also maintained the same trend.
He also revealed that iFLYTEK has launched more abundant products and solutions in the first half of this year, and contract orders have increased by more than 50%. In terms of automotive intelligence, it will not only provide software, but also provide products that integrate software and hardware. In terms of intelligent driving, iFLYTEK has made reserves for regarding two years, and has started to do POC (proof of concept) on cars, and the car products it will provide in the future will be more abundant.
As a strategic business of iFLYTEK, medical care also performed well in the first half of this year, achieving revenue of 140 million yuan during the period, a year-on-year increase of 40%. Liu Qingfeng said that medical treatment is the application field of iFLYTEK in the future, including medical equipment with integrated software and hardware, especially in the management of chronic diseases. iFLYTEK has firmly grasped the commanding heights from the core technology and GB side, and now it has given Nearly 500 million artificial intelligence follow-up visits have been made, and nearly 200 million people have received auxiliary diagnosis. Moreover, in more and more provinces, intelligent medical assistants are used by grassroots medical institutions, and family doctors and chronic diseases in the community have begun to enter the community. Manage middle.
According to the financial report, as of the end of the reporting period, iFLYTEK general practitioner assistants have covered 30 provinces (autonomous regions and municipalities directly under the Central Government) and 353 districts and counties across the country and have been regularly applied, assisting grassroots doctors to complete more than 168 million standardized electronic medical records, and accumulatively It has provided more than 440 million AI-assisted diagnosis suggestions for grassroots doctors, and more than 540,000 valuable cases have been corrected and diagnosed by general practitioner assistants.
The hardest time is over, the second half will be better
At the financial report exchange meeting, many investors expressed that it was not easy for iFlytek to perform in the first half of this year, which is also inseparable from iFLYTEK’s strategic determination and management measures.
Wu Xiaoru said that iFLYTEK has mainly made four measures. First, it pays more attention to both gross profit and profit in terms of business information, and will choose to abandon some projects with low profit margins; The third is to further emphasize the project system and digitalization; the last is to strengthen the talent strategy. It is expected that the overall personnel will increase by 5% throughout the year to ensure that personnel are more effectively invested in strategic business and further Optimize personnel structure.
Regarding the development in the second half of this year, Liu Qingfeng said frankly that the most difficult time has passed.
He further said that iFLYTEK’s business is now considered to be GBC linkage, each accounting for regarding 1/3, and the G-end grew by regarding 20% in the first half of the year. More than 50%; B-end and C-end continued to maintain a relatively high level in July, consumer business will grow by more than 40% to 50%, learning machines will still double throughout the year, and medical care will also double throughout the year.
Regarding the entire artificial intelligence outlet, Liu Qingfeng said that this is not a matter of slapping one’s head and relying on imagination, but to adhere to these standards: whether there is a scene that can be seen and touched, whether it can be promoted on a large scale, and whether it can be proved by statistical data. Application results of marketable scenarios supported by products and systems. He believes that artificial intelligence will profoundly change the current production and way of life in the next few years.
However, he also mentioned that external uncertainties always exist, and we must be mentally prepared to deal with emergencies. Enterprises should also play a positive role and do a good job of bottom-line thinking, whether they can go through the economic cycle and go through uncertainty. In this era, is there a rigid need for certainty? In Liu Qingfeng’s view, iFLYTEK has firmly grasped the comprehensive potential energy of systematic innovation, knows how to solve these logics related to the rigid needs of society, and will strive to find certainty in uncertainty.
“We use systematic innovation to solve the real rigid needs of major society, and use the advantages of generational difference to form the comparative advantage of iFLYTEK. The reserves that iFLYTEK has made now make us more confident in the future.” Liu Qingfeng said. According to the financial report, iFLYTEK invested 1.599 billion yuan in research and development in the first half of this year, a year-on-year increase of 30%.
Liu Qingfeng said that what iFLYTEK does is just what the real society needs, not optional, and it has been verified on a large scale to achieve practical results. In the future, it is full of confidence to achieve the goal of 100 billion in the 14th Five-Year Plan. .Return to Sohu, see more